KUALA LUMPUR (Oct 9): Following the tabling of Budget 2027 on Friday, property consultants told City & Country that the property-related policies announced represent positive measures towards improving access to housing and are firmly grounded in reality.
They also reinforce the government's commitment to urban regeneration, with substantial allocations towards major infrastructure and connectivity improvements. Below are excerpts of their comments:
Olive Tree Property Consultants Sdn Bhd founder and CEO Samuel Tan
Budget 2027 is anticipated to be an election budget. The highlights for the property industry are the stamp duty exemptions for homebuyers. These policies are in line with the reality on the ground. There is an urgent need to clear unsold stocks by lowering the cost of purchase. These lower taxes will act as an impetus for homebuyers to commit to the purchase. It is good news for the industry.
Next is the support for abandoned housing recovery schemes, which is much needed and awaited. The white knights must be given incentives to reduce abandoned projects. In fact, a step to improve is to prevent sick and abandoned projects.
The Bumiputera land endowment of 50 acres in Kuala Lumpur, valued at RM1 billion, allocated to Yayasan Pelaburan Bumiputra for affordable housing, is another proactive move to assist high-cost places.
Down south, the government agreed to implement the Elevated Autonomous Rapid Transit (E-ART) system in Johor Bahru as a primary solution to traffic congestion ahead of the Rapid Transit System (RTS) Link opening, alongside enhanced feeder bus and commuter services.
Nexus Sedenak is a strategic project for regulated sandboxing new ideas. Being near the KTM rail, it is suitable to be developed into a logistics hub. Anchored by the Finance Ministry, this project has huge prospects, as evidenced by the reception from the private sector.
Although the Queen Bee has not been announced, we believe it is an ecosystem builder. With it, a wider segment of the supply chain can be created to serve this Queen Bee. This Queen Bee will in turn attract others, and the cycle continues. We need to have supportive frameworks and people to win them.
Besides that, the single family office scheme is only the first step or a baby step to make Forest City the special financial zone. Once this is accepted by the investment community, the multi-family office scheme is the obvious next step forward.
Nawawi Tie Leung Property Consultants Sdn Bhd executive director and regional head of research and consulting Saleha Yusoff
Budget 2027 reinforces the government’s commitment to housing affordability and urban regeneration through measures to support homeownership, expand affordable housing provision and revive abandoned housing projects. These initiatives represent positive steps towards improving access to housing, although sustained progress will depend on how effectively they address the longer-term challenges facing Malaysia’s property market.
Housing affordability remains a key priority, with demand-side assistance taking prominence. The government will provide up to RM20 billion in housing financing guarantees through Syarikat Jaminan Kredit Perumahan. First-time homebuyers will also benefit from full stamp duty exemptions.
These measures should help improve access to financing and reduce the upfront costs of homeownership. To further strengthen their impact, continued attention to the alignment between house prices and household purchasing power will be important. Ensuring that homebuyers can sustain their mortgage repayments over the long term, alongside improving access to appropriately priced housing, will be key to translating these incentives into lasting affordability gains.
On the supply side, the allocation of approximately RM1 billion to Program Residensi Rakyat and Rumah Mesra Rakyat, alongside stamp duty exemptions for developers and buyers involved in abandoned housing projects, should support affordable housing delivery and facilitate the recovery of stalled developments.
The planned delivery of at least 2,500 Rumah Madani units in Belfield, Kuala Lumpur, also reflects continued efforts to provide affordable housing in urban areas.
Moving forward, effective implementation will be essential to maximise the benefits of these initiatives. Beyond the number of units delivered, affordability should also be considered in terms of location, connectivity to employment centres and access to essential services.
Similarly, reviving abandoned projects will require attention to the underlying causes of project failure to support the long-term viability of completed developments.
Rahim & Co Chestertons senior director of research and consultancy Sulaiman Saheh
As with last year, Budget 2027 is relatively muted for the property sector, with the government placing greater emphasis on easing household cost-of-living pressures than on introducing measures directly targeting the industry.
The government has actually focused more on the fundamentals of a household’s livelihood, where the focus is on increasing their disposable income and giving some leeway towards lowering their cost of living or increasing their purchasing power.
While the proposed stamp duty exemptions for first-time homebuyers offer some relief, the expanded coverage could benefit a wider income group, including the M40 segment. Under the proposal, first-time buyers purchasing homes priced up to RM500,000 would receive full stamp duty exemptions on loan agreements and transfer instruments, while those buying homes priced up to RM750,000 would receive full exemption on the first RM500,000 and 50% on the balance.
It is a good call, as the measure could help more buyers facing affordability challenges. However, stamp duty relief addresses only part of the cost of homeownership, with house prices remaining the underlying concern.
We welcomed the continued allocation for affordable housing and government quarters, as well as initiatives to improve public facilities and green spaces, which could enhance residents’ quality of life and make established neighbourhoods more attractive.
Nevertheless, the budget offered limited new measures to directly stimulate the property market, with the RM20 billion Housing Credit Guarantee Scheme (SJKP) continuing an existing initiative rather than providing a fresh boost.
There is also the lack of further support for rental housing, including rent-to-own schemes, which could provide an alternative for households unable to afford homeownership.
For the immediate solution to housing needs, the sector remains rather muted. Greater emphasis could also be placed on Industrialised Building System (IBS) adoption and newer construction technologies to improve housing production efficiency.
Overall, Budget 2027’s benefits for the property sector would largely be indirect, stemming from efforts to strengthen household purchasing power rather than targeted industry incentives.
Savills Malaysia group managing director Datuk Paul Khong
Budget 2027 continues to focus primarily on first-time homebuyers and affordable housing, in line with the government’s broader social objectives.
While these initiatives are welcomed, it is not a property-led budget and there are limited direct measures for the wider real estate sector. In short, no goodies available.
Property developers, investors and owners have no major game-changing incentives that could shift or influence market direction. As such, the real estate industry will rely on its own fundamentals, private-sector investment, infrastructure roll-outs and overall economic growth into 2027.
Meanwhile, the residential overhang remained a key concern the budget did not address.
Overall, the impact on real estate is selective and targeted at certain segments, while the broader market continues to chart its own course. Malaysia’s property market remains fundamentally resilient, and we hope and expect industrial, logistics, data centre-related assets, selected retail properties and growth corridors such as those in Johor to perform well despite the absence of property-specific incentives.
CBRE | WTW group managing director Tan Ka Leong
Budget 2027 constructively addresses demand-side affordability and supply-side development, while improving the infrastructure base across key urban and industrial markets.
The partial stamp duty exemption is positive. It should reduce upfront acquisition costs and improve affordability for first-time homebuyers. The full exemption for white-knight developers and original purchasers of abandoned projects will also improve viability of project revival, and reduce transaction costs.
The continued rollout of Rumah Mesra Rakyat, Program Perumahan Rakyat, Felda housing, Bandar Madani Bukit Jalil and new projects in Kulai, Nilai, Paya Rumput and Lembah Pertang will expand affordable housing supply and support construction activity.
The development of Malay Reserve Land, Permodalan Nasional Bhd’s 50-acre endowment and at least 2,500 Rumah Madani units in Belfield will allow households to live closer to employment centres, while supporting the regeneration of Kuala Lumpur as a more inclusive and liveable city.
It is encouraging to see substantial allocations directed towards major infrastructure and connectivity improvements across key growth corridors.
Continued investment in LuMIC, Chuping Valley and the NCER Agribio Economic Zone would also reinforce industrial and agribusiness growth, supporting demand for industrial land, logistics facilities, worker accommodation and related commercial uses.
The targeted investments across Penang, Perak, Negeri Sembilan, Pahang, Kedah and Terengganu also indicate a shift towards decentralised growth.
Also, NCT InnoSphere at Bukit Kayu Hitam should strengthen logistics and industrial ecosystems, while improved cross-border connectivity will reinforce linkages with Kulim and Penang’s established manufacturing bases.
The RM25 billion government-linked investment company investment commitment for Selangor should boost momentum for advanced high-tech industries and support demand for industrial land, high-specification facilities and related infrastructure while strengthening Selangor’s position for digital infrastructure and advanced manufacturing.
The development of Nexus Sedenak in Johor will accelerate business clustering and create more skilled employment opportunities, with spillovers to housing, retail and supporting commercial demand.
The expansion of family-office structures should support higher-value financial activities and strengthen demand for premium commercial, residential and hospitality offerings, in Forest City.
Tenaga Nasional Bhd’s (KL:TENAGA) RM15 billion grid upgrade is critical for energy-intensive sectors like data centres, and could open up more locations outside the Klang Valley and existing designated clusters for future development.